Due to the sheer number of professionals like engineers and doctors in India, suitable employment opportunities are limited.
As per a report, every fourth Indian in the age group between 22 and 26 years is an engineer. Such factors have led to an unemployment rate of around 80% amongst engineering graduates in the country.
The same is true for many medical graduates as well. Self-employment is a viable solution to such issues, wherein doctors, engineers and other professionals can set up their practice to earn a living.
A professional loan can provide the financial assistance necessary for setting up or growing your practice.
What are professional loans?
Professional loans are specialised forms of credit that financial institutions extend to qualified and eligible individuals belonging to specific professions, such as medical, engineering and chartered accountancy.
With these loans, a borrower can realise his/her entrepreneurial ideas and fund a business as they wish.
A professional loan supports self-employment, which can be beneficial for the career growth of these professionals.
Loans for doctors, engineers, chartered accountants and such qualified individuals are primarily available in four types to fund their professional as well as personal endeavours.
They include –
- Business loans
Professionals often require financial assistance to establish or expand their enterprise.
Whether it is a doctor requiring funds to buy advanced equipment or a chartered accountant seeking firm expansion, business loans for professionals can prove crucial for practice growth.
With such a business loan, reputed professionals can hire qualified staff for their enterprises as well. With no end-use restrictions, these professional loans come with flexibility in utilisation.
- Personal loans
Personal loans refer to unsecured credit, which is available to professionals for the fulfilment of personal financing needs.
They are available against simple eligibility criteria. Similar to business loans, these funds do not come with any end-use restrictions.
- Home loans
Home loans for professionals are specialised financial products, allowing these individuals to purchase a residential property.
Home loans, unlike unsecured credit options, come with an extended repayment tenor of up to 20 years.
- Loans against property
If a professional already own a residential or commercial property, he/she can leverage the same to acquire emergency funding for personal or business use.
These loans also come with an extended period within which a borrower must repay the loan liability.
How to apply for a professional loan?
Once you have selected the suitable loan amount, follow these steps mentioned below for a quick and convenient loan application.
- Check eligibility criteria
The first step in availing any professional advance is to verify whether you fulfil all eligibility criteria set forth by your chosen lender.
Eligibility factors tend to differ based on the type of professional loan an individual is looking to avail.
For instance, loan for medical professionals is only available if these applicants possess at least 2 years of experience post-registration.
Engineers and CA applicants should also check the requirements for their specific professional funding.
- Arrange necessary documents
Medical professionals should determine the documents needed to apply for a doctor loan. Similarly, chartered accountants and engineers should undertake a similar process and keep the necessary documents ready for hassle-free paperwork.
- Complete online application
Fill up an online application form and choose loan principal and repayment tenor. Attach scanned photocopies of necessary documents and click on submit.
If the standard professional loan principal does not meet your needs, you can also avail loan against property for chartered accountants, engineers or doctors, as per your profession.
Reputed institutions such as Bajaj Finserv offer high-value advances to eligible applicants as Professional Loans.
With competitive rates and flexible tenor, borrowers can benefit greatly from such financing avenues.
The company also provides pre-approved offers to accelerate the loan application process further.
These offers are available to a range of unsecured financial products, including business loans, personal loans and more. You can check your pre-approved offer by providing your name and contact details.
Financial products such as these can prove to be of significant help to professionals in various fields seeking additional cash infusion for their practice.
With such liquidity sources, these qualified borrowers can expand their business operations or meet personal expenses without overburdening their savings.